Freeport-McMoRan (FCX) is expected to report Q2 results tomorrow before the market opens with a conference call to follow at 10am ET.  

The current Capital IQ consensus stands at a loss of $0.01 per share on Revenues of $3.684 bln. FCX has not turned a profit since 2Q15. The revenue decline, if in line, would be -15% which would be the slowest rate of decline since 4Q14.

The stock has had a strong FY16 as it rebounded from severely distressed levels to make a push higher. With the balance sheet showing signs of improvement FCX will need to show signs that the operating environment is also improving in order to find the bids it needs to hit the next level in the stock.

The 2016 high of $14.06 set on April 29 will stand as a key level if the company is able to impress. If operations take a step backward and asset sales see some difficult a slip back to the $10 and 200-sma ($9.42) will stand as key levels of support.

Q1 Recap

  • FCX reported Q1 (Mar) loss of $0.16 per share, excluding $3.19/share in charges, in-line with the Capital IQ Consensus of ($0.16). Revenues fell 15.1% year/year to $3.53 bln vs the $3.52 bln Capital IQ Consensus.
  • Consolidated sales totaled 1.1 billion pounds of copper, 201 thousand ounces of gold, 17 million pounds of molybdenum and 12.1 million barrels of oil equivalents (MMBOE) for first-quarter 2016, compared with 960 million pounds of copper, 263 thousand ounces of gold, 23 million pounds of molybdenum and 12.5 MMBOE for first-quarter 2015.


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